FTX $900M Payout Pushes Creditors Past Full Recovery

Eligible creditors who cleared requirements by the June 16 record date will receive funds through Kraken or Payoneer within one to three business days, FTX Trading Ltd. and the FTX Recovery Trust said.

The fifth distribution is smaller than the roughly $2.2 billion paid in March and the $1.6 billion third round last September. Whether the cash flows back into crypto markets is uncertain. Many creditors sold their claims years ago to distressed-debt funds.

FTX collapsed in November 2022, revealing an $8 billion shortfall in customer funds. Founder Sam Bankman-Fried was later convicted of fraud. The Recovery Trust has clawed back assets and sold holdings to fund the phased repayments now nearing their conclusion.